ArmInfo. This January-November, 6% inflation was recorded in Armenia`s consumer market against 0.3% in the corresponding period last year, the cause being a 9.1% rise in prices for foodstuffs (including alcohol and cigarettes) and a 7.4% rise in prices for nonfoods, with a 1.5% rise in prices for services. Last January-November saw a 1% rise in prices for nonfoods, with a 0.9% reduction in prices for foodstuffs and a 1.4% rise in prices for services recorded.
As compared with last January-November, a 7.1% inflation was recorded in Armenia`s consumer market (against the 1% inflation the previous year), which was caused by a 10.9% rise in prices for foodstuffs, an 8.8% rise in prices for nonfoods and a 1.9% rise in prices for services. This is greatly different from what was recorded last January-November as compared with the corresponding period 2019 - a 0.8% rise in both foodstuffs and nonfoods prices, with a 1.3% rise in prices for services. This January-November, a 0.5% average monthly rise in prices was recorded in Armenia`s consumer market against 0.03% last year. A 9.6% rise in consumer prices was recorded this November against last November (a 1.6% rise in November 2020 against November 2019), which was caused by a 16.1% rise in foodstuffs prices an a 9.9% rise in nonfoods prices (against 1.7% and 1% respectively in November 2020 as compared with November 2019), and a 1.8% rise in service prices (against 1.5% in the previous period).
The monthly inflation remained low. Specifically, 1.7% inflation was recorded this November (against 0.7% this October and 1.3% last November), due to a 3.3% rise in foodstuffs prices, a 0.8% rise in nonfoods prices and a 0.4% rise in service prices against 2.6%, 0.6% and 0.1% rise respectively last November. This November, a 1.8% rise in consumer prices was recorded in Yerevan against 1.3% last November.
This November, the 1.7% rise in consumer prices was accompanied by 0.3% AMD appreciation against the USD. This January-November, the 6% inflation was accompanied by 8% AMD appreciation against the USD. On the other hand, last November the 1.3% inflation in the consumer market as accompanied by 1.6% AMD depreciation against the USD. Last January-November, the 0.3% inflation was accompanied by 4.5$ AMD depreciation against the USD. The AMDUSD exchange rate averaged AMD 477$1, a 4.5% drop as compared with last November (AMD499$1) and nearly equal to the November 2019 exchange rate (AMD 477$1).
In its revised October forecast, the World Bank notes that the average inflation in Armenia is expected to exceed the targeted inflation (4%, +/-1.5) and reach 6.1% (against 1.2% in 2020). In the medium term, the World Bank expects inflation in Armenia to reach the target - going down to 4.2% in 2022 and to 4% in 2023, due to the monetary policy of the RA Central Bank aimed to anchor inflation expectations. The WB warns that the 2021 higher inflation rates will affect the equal conditions and welfare of households.
